HEAVY falls on domestic and international bond markets dragged financial shares sharply lower on the Dublin market, and the mood in the market is one of uncertainty.

The weakness on bond markets was triggered by the tumble US treasury bonds on Friday by the uncertainty in Dublin wash compounded by some investor nervousness about the reactivated IRA campaign.

On the equity market, the fall in the financials was not due to any great weight of selling, but more due to bid prices being pulled back. AIB was worst affected and lost 11p to 347p although a portion of this fall was because the shares began trading ex dividend.

Bank of Ireland was 4p lower on 435p, while other yield sensitive stocks were also easier, with Irish Life down 1p on 248p and Irish Permanent 3p lower on 398p.

Industrials were thinly traded with CRH unchanged on 515p while Smurfit drifted 1p lower to 147p. Jurys fell to 212p the stock is the one most vulnerable to weakness as a result of renewed IRA attacks. Greencore rose once again to close on 585p. Adare was up 3p on 415p while Norish added 5p to 54p.

Bond prices fell sharply on virtually every international market but in Ireland the fall was more pronounced. The indications from the IFOX futures market are also not positive for gilts, with Marc prices falling. In the short term the main influence on bond markets will be the Federal Reserve Board chairman Mr Alan Greenspan's testimony to Congress today.